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Screenshot of a breaking news alert e-mail from Q2 2017
Plus500 Ltd (LON:PLUS) a leading online service provider for retail customers to trade FX and CFDs internationally, notes the exceptional movement in the value of the Swiss Franc today and is pleased to confirm to the market that this has had no material impact on the company’s financial and trading position.
The company is experiencing a profitable trading performance today and believes this is testament to the robustness of its risk management policies and processes which effectively managed the company’s exposure to the Swiss Franc.
The company’s proprietary risk management system ensures that overall exposures to a single instrument, such as the Swiss Franc, are unlikely to have a material impact on the company’s financial position. The company wishes to remind investors that its customers are unable to lose more than they deposit with the company and hence the company has no credit exposure to its customers.
Plus500 further stated they look forward to updating investors on its preliminary 2014 financial results on February 25th, 2015.
The Swiss Franc spike today just goes to show you that whenever you think business is roaring along, to always remain vigilant of risks. For FX brokers, business has been very solid since Q4 2014 with volumes increasing across the board. The fact that the CHF spike caught many off guard, you can be sure many in the industry will be reviewing their risk management systems and policies to protect both themselves and clients alike.
For the official release from the Plus500, click here.